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Churn Rate

Churn rate is a metric used to measure the percentage of customers or subscribers that cancel or do not renew their subscription or stop using the company’s products or services within a given period of time. It is calculated by dividing the number of customers lost during that time period by the total number of customers at the beginning of the period.

High churn rates can indicate that customers are dissatisfied with a business’s products or services, or that a business is failing to meet customer needs or expectations. Reducing churn rate is important for businesses, as it is typically more cost-effective to retain existing customers than to acquire new ones.

Strategies to reduce churn rate may include improving customer service, increasing product or service quality, offering loyalty programs, or providing personalised experiences. By monitoring and analysing churn rate, businesses can identify areas for improvement and take steps to retain customers and increase revenue.